Baring Asset Management, the international investment management firm, has announced three key changes to its Baring Directional Global Bond Trust, effective 10 March 2009 and subject t
Baring Asset Management, the international investment management firm, has announced three key changes to its Baring Directional Global Bond Trust, effective 10 March 2009 and subject to regulatory approval.
The fund will be renamed the Baring Absolute Return Global Bond Trust, its Investment Management Association sector classification will change from global bond to absolute return, and an institutional unit share class will be introduced.
Rod Aldridge, head of UK retail distribution at Barings, says: ‘The Directional Global Bond Trust was launched in March 2004 and was naturally classified within the IMA global bond sector. However, in quarter two of last year the IMA introduced the IMA absolute return sector. Following a review of the fund’s investment objective it was decided that this was a better fit for this fund.’
According to the IMA, the absolute return sector is designed to house funds managed with the aim of delivering absolute returns in any market conditions.
‘Given its absolute return-based approach and long/short capability, which helps generate positive returns in a wider range of market conditions, the fund is a natural fit in the absolute return sector,’ adds Aldridge. ‘The fund seeks to maximise return by investing with particular regard to the direction of movements in interest and/or exchange rates by holding long and short positions in traded bond, interest rate and exchange rate instruments and securities.’
To support the move to the absolute return sector, Barings will also change the fund’s name to the Baring Absolute Return Global Bond Trust, subject to Financial Services Authority approval.
Colin Harte, fund manager of the Baring Directional Global Bond Trust (pictured), adds: ‘An absolute return approach to fixed income investing has the potential to deliver investment returns in all conditions. In the current volatile environment managers can benefit from the ability to go long and short in order to exploit both cheap and expensive assets.’
Launched in March 2004, the Baring Directional Global Bond Trust was the UK’s first long/short unit trust.
